Colombo Dockyard PLC. Interim Financial Report

Transcription

1 Colombo Dockyard PLC Interim Financial Report For the Three Months Period Ended 31 March 2018

2 This page kept blank Intentionally

3 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME For the three months ended 31st March Change % Year ended Rs,'000 Rs,'000 Rs,'000 Revenue 2,601,077 4,060,266 (35.94) 12,929,096 Cost of sales (2,268,362) (3,469,904) (34.63) (11,162,224) Gross profit 332, ,362 (43.64) 1,766,872 Other income 67,348 39, ,033 Distribution expenses (6,531) (5,834) (30,859) Administrative expenses (541,748) (494,796) 9.49 (2,050,177) Other operating income / (expenses) 1, (29,972) Net finance income / (expenses) 56,077 36, ,767 Profit / (Loss) before tax (90,520) 165,703 (154.63) 135,664 Income tax expense (28,127) (21,832) (109,570) Profit / (Loss) for the period (118,647) 143,871 (182.47) 26,094 Other comprehensive income Fair value change of available-for-sale financial assets - - 1,129 Foreign currency translation differences - foreign operations 5,686 6,174 11,633 Defined benefit plan actuarial gains / (losses) - - (58,920) Tax on other comprehensive income - - 8,465 Other comprehensive income for the period - net of taxes 5,686 6,174 (37,693) Total comprehensive income for the period (112,961) 150,045 (11,599) Profits / (Losses) attributable to : Owners of the company (120,359) 141,431 25,354 Non - controlling interest 1,712 2, Profit / Loss for the period (118,647) 143,871 26,094 Total comprehensive income attributable to : Equity holders of the parent (117,217) 144,562 (18,040) Non - Controlling interest 4,256 5,483 6,441 Total comprehensive income for the period (112,961) 150,045 (11,599) Earnings per share (Rs) (1.67) Note : Figures in brackets indicate deductions The above figures are subject to audit 01. Colombo Dockyard PLC

4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31st March As at Rs,'000 Rs,'000 Rs,'000 ASSETS Non-current assets Property, plant and equipment 4,004,056 3,988,144 3,912,488 Intangible assets 21,612 35,182 25,039 Other investments 16,191 15,062 16,191 Differed tax assets 99, , ,006 Other financial assets including derivatives 472, , ,689 Total non-current assets 4,613,817 4,584,235 4,526,413 Current assets Inventories 828,224 1,227, ,516 Trade and other receivables 9,902,312 8,043,414 7,179,216 Other financial assets including derivatives 166, , ,764 Investments classified as Fair value Through Profit or Loss 518, , ,685 Cash and cash equivalents 2,736,058 3,160,218 5,060,826 Total current assets 14,151,299 12,781,059 13,676,007 Total assets 18,765,116 17,365,294 18,202,420 EQUITY AND LIABILITIES Stated capital 714, , ,396 Exchange equalization reserve 13,932 7,988 10,790 Available-for-sale reserves 16,082 27,305 16,082 Retained earnings 8,905,345 9,303,466 9,149,286 Equity attributable to equity holders of the parent 9,649,755 10,053,155 9,890,554 Non-controlling interest 64,129 58,915 59,873 Total equity 9,713,884 10,112,070 9,950,427 Non-current liabilities Differed tax liability 1,053-1,053 Employee benefits 903, , ,103 Total non-current liabilities 904, , ,156 Current liabilities Interest bearing borrowings 3,409,981 4,078,515 3,494,446 Trade and other payables 4,611,233 2,213,139 3,778,412 Income tax payable 46,834 55,049 34,623 Dividends payable 34,910 26,191 26,152 Bank overdrafts 43,825 20,139 2,204 Total current liabilities 8,146,783 6,393,033 7,335,837 Total equity and liabilities 18,765,116 17,365,294 18,202,420 Net assets per share (RS) Note :The above figures are subject to audit These Financial Statements have been prepared in compliance with the Companies Act No. 7 of 2007 (Sgd.) P D Gihan Ravinatha Chief Financial Officer (Sgd.) Dr. Toru Takehara Chairman (Sgd.) D V Abeysinghe Managing Director / CEO May 14, 2018 Colombo 02. Colombo Dockyard PLC

5 STATEMENT OF CHANGES IN EQUITY - GROUP For the three months ended 31st March Stated capital Retained earnings Available - for - sale reserve Exchange equalization reserve Total Non controlling interest Total equity Rs,'000 Rs,'000 Rs,'000 Rs,'000 Rs,'000 Rs,'000 Rs,'000 As at 1 January ,396 9,149,286 16,082 10,790 9,890,554 59,873 9,950,427 Adjustment for the effect of SLFRS 15 and 09 - (15,794) - - (15,794) - (15,794) Net Profit / (Loss) for the period - (120,359) - - (120,359) 1,712 (118,647) Other comprehensive income ,142 3,142 2,544 5,686 Dividends paid - (107,788) - - (107,788) - (107,788) As at 31 March ,396 8,905,345 16,082 13,932 9,649,755 64,129 9,713,884 As at 1 January ,396 9,162,035 27,305 4,857 9,908,593 53,432 9,962,025 Net Profit / (Loss) for the period - 141, ,431 2, ,871 Other comprehensive income ,131 3,131 3,043 6,174 Dividends paid As at 31 March ,396 9,303,466 27,305 7,988 10,053,155 58,915 10,112, Colombo Dockyard PLC

6 CONSOLIDATED CASH FLOW STATEMENT For the three months ended 31st March Rs,'000 Rs,'000 Cash flow from operating activities Net profit before tax (90,520) 165,703 Adjustment for ; Depreciation of property, plant & equipment 104, ,276 Amortization of intangible assets 3,575 3,473 Provision for retirement benefit obligations 35,595 35,262 Provision / (reversal) for bad and doubtful debts (100) - Provision / (reversal) for obsolete stocks (1,618) (83) Interest income (75,984) (53,942) Interest expense 46,510 23,065 Operating profit before working capital changes 21, ,755 (Increase) / Decrease in inventories (81,090) 82,913 (Increase) / Decrease in trade and other receivables (2,697,855) 3,235,960 (Increase) / Decrease in other financial assets (1,521) 110,251 Increase / (Decrease) in trade and other payables 832, ,638 Increase / (Decrease) other financial liabilities - (18,617) Cash generated from / (used in) operating activities (1,925,727) 3,900,900 Interest paid (46,510) (23,065) Gratuity paid (47,302) (29,328) Income tax / ESC paid (19,033) (37,612) Net cash generated from / (used in) operating activities (2,038,572) 3,810,895 Cash Flow from investing activities Purchase of property plant and equipment (196,176) (20,557) Interest received 51,854 28,615 Net cash generated from / (used in) investing activities (144,322) 8,059 Cash flow from financing activities Loans obtained / (paid) during the period (Net) (84,465) (3,331,228) Dividends paid (99,030) - Net cash generated from / (used in) financing activities (183,495) (3,331,228) Net Increase / (Decrease) in cash and cash equivalents (2,366,389) 487,726 Cash and cash equivalent at the beginning of the period 5,058,622 2,652,353 Cash and cash equivalent at the end of the period 2,692,233 3,140,079 Analysis of cash and cash equivalents Cash in hand and bank / short term investments 2,736,058 3,160,218 Bank overdrafts (43,825) (20,139) 2,692,233 3,140,079 Note : Figures in brackets indicate deductions The above figures are subject to audit 04. Colombo Dockyard PLC

7 STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME For the three months ended 31st March Change % Year ended Rs,'000 Rs,'000 Rs,'000 Revenue 2,358,403 3,849,861 (38.74) 12,052,630 Cost of sales (2,125,706) (3,333,276) (36.23) (10,607,143) Gross Profit 232, ,585 (54.95) 1,445,487 Other income 68,016 39, ,816 Distribution expenses (4,194) (3,035) (21,814) Administrative expenses (484,532) (449,738) 7.74 (1,866,251) Other operating Income / (expenses) 1, (29,972) Net finance income / (expenses) 32,648 11, ,631 Profit / (Loss) before tax (153,746) 114,896 (233.81) (73,103) Income tax expense (12,000) (9,000) (69,417) Profit / (Loss) for the period (165,746) 105,896 (256.52) (142,520) Other comprehensive income Fair value change of available-for-sale financial assets - - 1,129 Defined benefit plan actuarial gains / (losses) - - (60,252) Tax on other comprehensive income - - 8,839 Other comprehensive income for the period - net of taxes - - (50,284) Total comprehensive income for the period (165,746) 105,896 (192,804) Earnings per share (Rs) (2.31) 1.47 (1.98) Note : Figures in brackets indicate deductions The above figures are subject to audit 05. Colombo Dockyard PLC

8 STATEMENT OF FINANCIAL POSITION - COMPANY As at 31st March As at Rs,'000 Rs,'000 Rs,'000 ASSETS Non-current assets Property, plant and equipment 3,864,710 3,901,824 3,806,437 Investment property 2,865 2,865 2,865 Intangible assets 19,611 32,863 22,886 Investments In subsidiaries 3,816 3,141 3,816 Other investments 16,191 15,062 16,191 Differed tax assets 99, , ,006 Other financial assets including derivatives 459, , ,568 Total non-current assets 4,465,860 4,487,046 4,413,769 Current assets Inventories 700,912 1,126, ,489 Trade and other receivables 9,327,797 7,659,780 6,755,487 Other financial assets including derivatives 161, , ,999 Amounts due from related parties 44,781 6,076 86,052 Cash and cash equivalents 2,320,878 2,494,943 4,642,295 Total current assets 12,556,160 11,436,411 12,291,322 Total assets 17,022,020 15,923,457 16,705,091 EQUITY AND LIABILITIES Stated capital 714, , ,396 Available-for-sale reserves 16,082 14,953 16,082 Retained earnings 7,819,227 8,407,680 8,107,851 Total equity 8,549,705 9,137,029 8,838,329 Non-current liabilities Employee benefits 886, , ,062 Total non-current liabilities 886, , ,062 Current liabilities Interest bearing borrowings 3,409,981 4,078,515 3,494,446 Trade and other payables 4,042,636 1,670,059 3,333,156 Other financial liabilities including derivatives Amounts due to related parties 98, , ,271 Dividends payable 34,910 26,191 26,152 Bank overdrafts - 13,471 - Total current liabilities 7,586,055 5,942,331 6,967,700 Total equity and liabilities 17,022,020 15,923,457 16,705,091 Net assets per share (RS) Note :The above figures are subject to audit These Financial Statements have been prepared in compliance with the Companies Act No. 7 of 2007 (Sgd.) P D Gihan Ravinatha Chief Financial Officer (Sgd.) Dr. Toru Takehara Chairman (Sgd.) D V Abeysinghe Managing Director / CEO May 14, 2018 Colombo 06. Colombo Dockyard PLC

9 STATEMENT OF CHANGES IN EQUITY - COMPANY For the three months ended 31st March Stated capital Retained earnings Available - for - sale reserves Total Rs,'000 Rs,'000 Rs,'000 Rs,'000 As at 1 January ,396 8,107,851 16,082 8,838,329 Adjustment for the effect of SLFRS 15 and 09 - (15,090) - (15,090) Net Profit / (Loss) for the period - (165,746) - (165,746) Other comprehensive income Dividends paid - (107,788) - (107,788) As at 31 March ,396 7,819,227 16,082 8,549,705 As at 1 January ,396 8,301,784 14,953 9,031,133 Net Profit / (Loss) for the period - 105, ,896 Other comprehensive income Dividends paid As at 31 March ,396 8,407,680 14,953 9,137, Colombo Dockyard PLC

10 COMPANY CASH FLOW STATEMENT For the three months ended 31st March Rs,'000 Rs,'000 Cash flow from operating activities Net profit before tax (153,746) 114,896 Adjustment for ; Depreciation of property, plant & equipment 99, ,101 Amortization of intangible assets 3,275 3,380 Provision for retirement benefit obligations 34,500 34,500 Provision / (reversal) for obsolete stocks (1,618) (14) Interest income (52,549) (29,008) Interest expense 39,549 23,043 Operating profit before working capital changes (31,460) 246,899 (Increase) / Decrease in inventories (51,805) 107,683 (Increase) / Decrease in trade and other receivables (2,554,728) 3,201,494 (Increase) / Decrease in amounts due from related parties 41,271 25,616 (Increase) / Decrease in other financial assets (6,888) 142 Increase / (Decrease) in trade and other payables 709, ,735 Increase / (Decrease) in amounts due to related parties (15,249) 51,293 Increase / (Decrease) other financial liabilities (169) (19,256) Cash generated from / (used in) operating activities (1,909,548) 3,782,606 Interest paid (39,549) (23,043) Gratuity paid (47,302) (29,328) Income tax / ESC paid (14,864) (25,319) Net cash generated from / (used in) operating activities (2,011,263) 3,704,916 Cash Flow from investing activities Purchase of property plant and equipment (157,402) (16,292) Interest received 30,743 14,535 Net cash generated from / (used in) investing activities (126,659) (1,756) Cash flow from financing activities Loans obtained / (paid) during the period (Net) (84,465) (3,331,228) Dividends paid (99,030) - Net cash generated from / (used in) financing activities (183,495) (3,331,228) Net Increase / (Decrease) in cash and cash equivalents (2,321,417) 371,932 Cash and cash equivalent at the beginning of the period 4,642,295 2,109,540 Cash and cash equivalent at the end of the period 2,320,878 2,481,472 Analysis of cash and cash equivalents Cash in hand and bank / short term investments 2,320,878 2,494,943 Bank overdrafts - (13,471) 2,320,878 2,481,472 Note : All values in Rupees '000s, unless otherwise stated Figures in brackets indicate deductions The above figures are subject to audit 08. Colombo Dockyard PLC

11 01. Corporate Information Colombo Dockyard PLC, is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock exchange. Company Subsidiaries are : Dockyard General Engineering Services (Pvt) Ltd - Sri Lanka Ceylon Shipping Agency (Pte) Ltd - Singapore The interim financial statements of the Group and the Company for the three months period ended 31 March 2018 were authorized for issue by the board of directors on May 14, Basis Of Preparation The Interim Financial Statements of the Company and Group have been prepared on the basis of the same accounting policies and methods applied for the year ended December 31,2017 except for changes required due to adoption of following accounting standards. SLFRS 15 - Revenue from contracts with customers Revenue is recognized by applying the five step model and based on the principal of transferring the control to the customer and, it replaced the previous principal of risk and rewards. Same principal is applicable for goods, services and long term contracts. SLFRS 9 - Financial instruments This replaced the provisions of LKAS 39 that relate to the recognition, classification and measurement of financial assets and liabilities and also the de-recognition and impairments of financial instruments. The Company and the Group has adopted SLFRS 15 and SLFRS 09 with effect from January 01, 2018 and, also adopted the new standards retrospectively with the cumulative effect recognized at the date of initial application. Accordingly cumulative effect has adjusted to the opening retained earnings as at January 01,2018 According to the initial assessment made by the Group and the Company, cumulative effect of SLFRS 15 and SLFRS 09, does not have a material impact to the financial statements and adjusted as explained above. However, Group and Company will further evaluate the requirements of SLFRS 09 & 15 in order to recognized un-identified effects, if any. Financial statements are in compliance with Sri Lanka Accounting Standard 34, LKAS 34 - Interim Financial Reporting, Comparative figures have been re-classified, where necessary, to confirm to the current period recognition, measurement and presentation. 03. Contingencies, capital and other commitments There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual Financial Statements for the year ended December 31, Dividend paid A first and final dividend of Rs 1.50 per share was paid on March 20, 2018 for the year of Post balance sheet events Subsequent to the reporting date, no circumstances have arisen which would require adjustment to or disclosures in Financial Statements. 09. Colombo Dockyard PLC

12 NOTES TO THE FINANCIAL STATEMENTS Cont., 06. Share Information 06.1 MARKET PRICES RECORDED DURING THE QUARTER ENDED 31 MARCH RS. Rs. Highest market price per share Lowest market price per share Closing market price per share DERECTORS SHAREHOLDING AS AT 31 MARCH 2018 No NAME OF DIRECTOR NO. OF SHARES 1 Dr. T. Takehara Nil 2 Mr. C Sarath W De Costa Nil 3 Mr. D V Abeysinghe Mr. T Nakabe Nil 5 Mr. K Utsumi NIl 6 Mr. G A D L H Ganlath Mr. H A R K Wickramathilake 1,103 8 Mr. M S A Wadood Mr C J P Siriwardana Nil 06.3 TOTAL NUMBER OF SHARES As at ,858,924 As at ,858, PUBLIC SHAREHOLDING PRECENTAGE AS AT % 06.5 NUMBER OF PUBLIC SHAREHOLDERS AS AT , TWENTY (20) MAJOR SHAREHOLDERS AS AT NO NAME NO. OF SHARES % 1 Onomichi Dockyard Company Limited 36,648, Employees Provident Fund 11,744, Sri Lanka Insurance Corporation Ltd-General Fund 3,592, Sri Lanka Insurance Corporation Ltd-Life Fund 3,592, Sri Lanka Ports Authority 2,186, Employees Trust Fund Board 1,736, National Savings Bank 1,234, Bank of Ceylon No.1 Account 897, Mellon Bank N.A-Florida Retirement Systems 480, Bank of Ceylon No.2 A/C 335, Deutsche Bank AG as Trustee for JB Vantage Value Equity Fund 265, Star Packageing (pvt) Ltd 235, Lanka Milk Foods (CWE) Limited 219, Mr S M B Obeysekera and Mrs C N Obeysekara 200, Associated Electrical Corporation Ltd 169, Mercantile Investments and Finance PLC 169, DFCC Bank A/C 1 160, E W Balasuriya & Co. (pvt) Ltd 155, Askold (Private) Limited 150, Sri lanka Export Development Board 138, Colombo Dockyard PLC

13 NOTES TO THE FINANCIAL STATEMENTS Cont., 07. SEGMENTAL INFORMATION 07.1 Segment revenue For the three months ended 31st March Group Company Group Company Shipbuilding 891, ,471 2,201,137 2,201,137 Ship repairing 1,401,768 1,401,768 1,635,754 1,635,754 Heavy engineering 232,096 65, ,921 12,970 Material sales and other services 75,742-56,454 - Total 2,601,077 2,358,403 4,060,266 3,849, Segment results For the three months ended 31st March Group Company Group Company Shipbuilding 8,712 8,712 94,772 94,772 Ship repairing 214, , , ,334 Heavy engineering 61,219 9,002 44,106 1,479 Material sales and other services 47,801-31,150 - Total 332, , , ,585 * Segment results have been stated up to the Gross Profit Level 11. Colombo Dockyard PLC